Question: Activity Cost Pool Supporting direct labor Order processing Custom design processing Customer service Activity Rate $ 20 per direct labor-hour $ 192 per order $
Activity Cost Pool Supporting direct labor Order processing Custom design processing Customer service Activity Rate $ 20 per direct labor-hour $ 192 per order $ 262 per custom design $ 418 per customer Management would like an analysis of the profitability of a particular customer, Big Sky Outfitters, which has ordered the following products over the last 12 months Standard Custom Mode Besios 2 Number of sliders Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per slider 30.50 33.00 $1,7505 2,90 5 574 The company's direct labor rate is $20 per houn Required: Using the company's activity-based costing system compute the customer margin of Big Sky Outfitters (Round your intermediate calculations and final answer to the nearest whole dollar amount. Loss amounts should be entered with a minus slon)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
